Italy's new economy minister yesterday used his first public comments in office to poke fun at central bank governor Antonio Fazio, who has spurned a demand from Prime Minister Silvio Berlusconi to quit.
Economy Minister Giulio Tremonti was attending meetings of the Group of Seven and the International Monetary Fund in Washington with his long-time adversary Fazio, as commentators warned Italy's credibility was plumbing new lows.
The standoff over the Bank of Italy compounded problems for Mr Berlusconi after former Economy Minister Domenico Siniscalco resigned on Thursday complaining about the prime minister's unwillingness to drive Mr Fazio from office.
"If you don't go away, I'll have you roughed up a bit," Mr Tremonti told reporters, imitating the voice of the central bank chief who is under pressure to step down over allegations he was biased in bank takeover battles that he was supposed to oversee.
Last October, in a now famous episode caught on television in Italy, Mr Fazio tried to avoid an insistent reporter from an Italian satirical TV programme, telling his body guards to "rough him up a bit".
Mr Tremonti, who had a bitter relationship with Mr Fazio during his previous stint as economy minister between 2001 and last year, flew to Washington immediately after being named minister on Thursday and vowed to make Mr Fazio's life tough.
"I'm going to completely ignore him," Mr Tremonti was quoted as saying by Corriere della Sera newspaper yesterday, adding: "I really want to see his face when he sees me."
Opposition leader Romano Prodi said the situation was "making us a laughing stock" on the international stage, adding Mr Berlusconi should resign to open the way for a snap general election, some eight months ahead of schedule.
Mr Berlusconi turned his guns on Mr Fazio on Thursday - too late to prevent Mr Siniscalco's exit - telling the central banker he should step down over accusations he unfairly favoured a local bank in a cross-border takeover fight.
Yesterday, the prime minister denied he had expected an immediate reaction from the central bank chief.
When asked by reporters in Rome if he had anticipated a next-day response from Mr Fazio, Mr Berlusconi said "no" and added that he hadn't spoken with him at all.
His inability to oust Mr Fazio, who has helped prompt the resignation of two of his economy ministers over the past two years, has underscored deep coalition rifts that have hobbled the government's effectiveness.
As a result, Mr Berlusconi was facing an open challenge to his own leadership credentials from inside the coalition, with one government ally saying openly on Thursday that he was not the best person to head the centre-right ticket.
In comments on a late night TV talk show on Thursday, Mr Berlusconi, for the second time this month, said only the European Central Bank could dismiss Mr Fazio - "if it believes he has broken the law".
But a senior ECB official rejected the prime minister's contention, saying only the BOI's superior council could revoke his mandate by a two-thirds majority of its 13 members.